Arrowhead Properties: Eight buildings in Maboneng acquired

Arrowhead Properties has agreed to acquire eight buildings in the Maboneng Precinct, east of Johannesburg’s central business district, for R180 million from urban regeneration company Propertuity. Maboneng is a mixed-use neighbourhood of 40 commercial, residential, industrial and retail buildings developed by Propertuity. The eight buildings acquired by Arrowhead have a lettable area of 58 000m² and are largely industrial, with a smaller office and retail component. Arrowhead said the acquisition, at a forward yield of 11 percent, was in line with its strategy of acquiring revenue-enhancing properties. The purchase agreement provided for a guaranteed return of 11 percent in year one, with an 8 percent escalation into year two. Arrowhead A-linked units rose 2c to close at R7.18 yesterday. – Roy Cokayne